The Philippine Stock Exchange Index (PSEi) bounced back as investors picked up bargains on news that COVID-19 cases in the National Capital Region seems to be easing.
The PSEi rose 120.13 points or 1.66 percent to close at 7,343.96 led by the Holding Firms and Services sectors with only the Mining and Oil counter retreating. However, volume declined to 850 million shares worth P4.95 billion as gainers beat losers 100 to 85 with 56 unchanged.
“The local bourse bounced back after two consecutive days of decline on the back of bargain hunting,” sa Phi Financial Senior Supervisor for Re Japhet Tantiangco.
He noted that, “investors were cheered by the signs of improvement in the National Capital Region’s COVID-19 situation. According to OCTA Research Fellow Dr. Guido David, the daily growth rate in Metro Manila is already at -4 percent while the reproduction number has declined from the peak of 6.16 to 2.37.”
Tantiangco pointed out though that the lower trading volume “shows that many investors are still staying out of the market while waiting for the COVID-19 uncertainties to clear.”
Regina Capital Development Corporation Managing Director Luis Limlingan said “Philippine shares closed higher as investors await the reopening of US markets which were closed on Monday in observance of Martin Luther King, Jr. Day."
He added that, “(the) US stock futures were little changed Monday night as traders braced for the latest batch of corporate earnings.”